Artikel

Does regulation influence microfinance institutions to be more client-responsive?

The regulation of microfinance services is likely to have a wide-ranging influence on the microfinance sector, particularly on institutions and their clients. This paper reveals the impact of a specific regulatory regime, the "Microcredit Regulatory Authority Act, 2006", enacted by the Bangladesh government to monitor and supervise nonprofit nongovernment organizations (NGOs). We analyzed survey and interview data provided by clients of both nonprofit microfinance institutions (MFIs) registered under the Act and nonprofit institutions that are unregistered, all lending only to women. Client-level analysis using fixed effects for specific MFI membership is applied, focusing on the role of regulation by comparing protections as consumers of financial intermediations in terms of financial literacy, awareness, and status of clients of registered and unregistered MFIs. We found compelling evidence of a positive association between the financial status, financial literacy, and financial awareness of clients of registered MFIs, but not unregistered MFIs. These findings support the need for MFIs to implement consumer protection measures and inform their consumers about key issues to achieve improved client outcomes.

Sprache
Englisch

Erschienen in
Journal: International Journal of Financial Studies ; ISSN: 2227-7072 ; Volume: 8 ; Year: 2020 ; Issue: 4 ; Pages: 1-24 ; Basel: MDPI

Klassifikation
Wirtschaft
Thema
consumer protection
nongovernment organization
regulation
microfinance
consumer awareness
Bangladesh

Ereignis
Geistige Schöpfung
(wer)
Morshed, Zakir
Habib, Moshin
Jubb, Christine
Ereignis
Veröffentlichung
(wer)
MDPI
(wo)
Basel
(wann)
2020

DOI
doi:10.3390/ijfs8040063
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Morshed, Zakir
  • Habib, Moshin
  • Jubb, Christine
  • MDPI

Entstanden

  • 2020

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